Faculty of Management Studies
Department of Business Administration
SQA HND
Academic Year: 2021
Assessor : Hiruni Rathwatta Student No:
Unit Code : HP7K 47
Title of the Unit : Business Accounting
Outcome : 01 Batch : 39
Examination Date : 22-07-2021
Examination Start time : 09.00 a.m
Duration of Examination : 02 hours
Uploading time : 24 hours (before 09.00 am on 23/07/2021)
Instructions to Students
General:
1. This is a opened book exam.
2. This question paper contains one section.
3. You have to answer all questions in given Section.
4. Illustrate your answers with clear diagrams wherever possible.
5. No mobile devices are allowed unless it is specified.
Specific Information:
1. Relevant working notes should be submitted.
Additional Instructions to Students and Invigilators:
Calculators may be used subject to University regulations Yes
Students are allowed to keep Examination Question Paper during the examination No
Students are allowed to bring the summary note which is equal to 250 words No
Additional Specialized Material: NONE
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Assessment checklists
Unit assessment: candidate’s assessment
record HP7K 47 — Business Accounting
Class Candidate Name
Group Candidate ID
Outcome 1
Assessment task 1
Record of Performance
Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
prepare an Income Statement, a Statement of Financial Position and a Statement
of Changes in Equity, from a year-end trial balance, for a limited company, for internal
use
incorporate six different year-end adjustments into the accounts, from the following
—other receivables, other payables, depreciation, closing inventory, finance costs and
corporation tax
Satisfactory/Unsatisfactory Comments
The comment column can be used to highlight any re-assessment that may be needed.
Overall comments:
Assessor’s signature: Date:
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Assessment Component/ Outcome: Outcome 01
Assessment Criteria: Prepare financial statements, of a limited company, for internal use
(supervised assessment conditions with access restricted to pro forma layouts)
Assessment Task: 01
Outcome covered 1 Assessment task instructions
Read the information below and answer the following question.
You are the Accountant of Super products Manufacturing Company, which produces baby foods.
The trial balance for 31st December 2019 is given and the board of directors ask you to produce
financial statements for the year ended 2019. You have been given a pro forma layout to assist
you in your task.
Trial Balance for Super Products Ltd at 31 December 2019
Debit Credit
£000 £000
Sales
7,000
Opening stock as at 01st of January 2019
200
Return inwards and outwards
200 400
Inward charge
50
Purchases
3,250
Trade Payables
570
10% Debenture,2020
800
Trade Receivables
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630
Land
4,000
Building
3,300
Machine
1,900
Distribution Vehicle
2,700
Accumulated Depreciation Building
650
Machine
450
Distribution
Vehicle 420
Investment
200
Administration expenses
600
Distribution Expenses
560
Cash and Cash Equivalents
120
Loss of disposing a machine
30
Divided Paid
50
Retained Earnings as at 01.01.2019
2,500
Ordinary Share Capital
5,000
17,790 17,790
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Notes to the accounts
1 Inventory at 31 Dec 2019 was valued at £150,000
2 £40,000 are accrued for distribution expenses at 31/12/2019
3 Prepaid administration expense at 31/12/2019 is £50,000
4 The depreciation should be calculated at the rate of 10% and use straight line
method. No depreciation is made for land.
5 Debenture interest is outstanding at the year-end.
6 Corporation tax charge on profits for the year should be 12%.
Assessment task
You are required to produce an Income Statement, a Statement of Financial
Position and a Statement of Changes in Equity as at 31 December 2019 (for
internal use). Relevant working notes should be submitted.
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Pro forma layout
Income Statement for Year ended
£000 £000
Revenue
Cost of Sales:
Gross profit
Expenses:
Profit/loss on disposal of operations
Operating profit
Finance income/investment income
Finance costs
Profit on ordinary activities before taxation
Taxation
Profit on ordinary activities after taxation and
profit for the financial year
Statement of Financial Position at
£000 £000
Non-current assets
Current assets
Total Assets
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Capital and Reserves
Equity
Non-current liabilities
Current liabilities
Total Equity and Liabilities
Statement of Changes in Equity
Share Capital Retained Total Equity
Earnings
£000 £000 £000
Balance at
Changes in Equity
Balance at
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